Carnegie Joins Forces with Weinberg Capital
- Nov 04, 2016
By Keith Loria, Contributing Editor
Greenville, Mich.—Carnegie Cos. and Weinberg Capital Group Inc., have partnered to form Carnegie-Weinberg, and have already acquired three shopping centers in Greenville, Mich., totaling approximately 174,000 square feet.
“Carnegie-Weinberg believes that the timing is good to acquire shopping centers in tertiary markets at reasonable valuations. Carnegie has a multi-decade history doing this quite successfully,” John Herman, WCG director, principal & manager of the firm’s real estate investments, told Commercial Property Executive. “Weinberg Capital Group has been exploring ways to layer our private equity and asset management expertise model in the real estate asset class. Both parties just came together at the right time to scale up the portfolio.”
The shopping center portfolio includes The Marketplace, a 65,291-square-foot shopping center; Greenville West, a 100,752-square-foot center; and Hathaway Circle, a 8,032-square-foot center. The three retail centers are located in close proximity to each other and neighbor a Meijer Grocery and Walmart. The properties include strong historical occupancy rates from a diverse base of leading national tenants.
CW has already initiated a program to upgrade all three centers.
The partnership marries Carnegie’s long history of successfully identifying, acquiring and managing real estate portfolios with WCG’s capital base, asset management expertise, and long track record building successful enterprises. The strategy of the joint venture will be to look to opportunistically acquire and manage properties in a variety of segments, including: multifamily, office, industrial, and with a core focus on retail shopping centers.
“The Greenville, Michigan portfolio fits precisely within our thesis of acquiring well-located, stable shopping centers in markets outside of large cities,” Herman said. “The most important criteria Weinberg Capital Group considers for any investment is that we are partnering with world-class management. We believe Carnegie is in fact best-in-class at what they do in the real estate business.”
Looking ahead, Herman said he would expect the company to acquire another 3-4 properties in 2017 to add to the portfolio.